[ET Net News Agency, 16 March 2026] Global capital markets enter a "super central bank
week." With the Iran conflict outlook uncertain and sentiment unclear, the HSI opened 29
points lower. However, a string of heavyweight Mainland China data released intraday beat
expectations, turning the market decisively higher. At midday, the HSI stood at 25,755, up
289 points or 1.1%, reclaiming the 10-day line at about 25,830. Main board turnover was
near HKD 143.5 billion. The Hang Seng China Enterprises Index was at 8,782, up 111 points
or 1.3%. The Hang Seng Tech Index was at 5,089, up 111 points or 2.2%.

"Nip Chun Pong: The market will likely remain choppy, with the 25,000 to 26,000 range in
play"

Hong Kong stocks opened lower alongside external markets, but the early session was
choppy and at one point rose by over 100 points. Nip Chun Pong, the Chief Strategist at
Solo Securities, told ET Net News Agency that after three straight declines and a soft US
close on Fri, 13 Apr, the HSI night session still rose, and today's move is largely a
technical rebound in line with futures. However, with the Middle East situation still
unclear and oil elevated, NYMEX crude hovering near USD 100 per barrel, the outlook is
unfavourable for Hong Kong stocks.
Nip noted that with results season underway and Tencent (00700) and Alibaba (09988)
reporting this week, their prints will sway the market. Tencent and AIA (01299) found
support this morning and rose more noticeably, while Alibaba and HSBC (00005) were softer
early on. Thus, the path forward also depends on whether HSI heavyweights attract flows.
In an optimistic scenario, the HSI could test 26,000. If Middle East tensions worsen and
oil keeps climbing, the HSI could still retest 25,000. With bull CBBC heavy positioning
around 24,800 to 24,899, a break below 25,000 could trigger a move into that zone.

"Rising oil plus a stronger US dollar weigh on gold"

Despite elevated risk aversion amid Middle East uncertainty, gold has turned soft. NY
gold futures hit as high as 5,400 US dollars on 2 Mar before churning lower. In Asia this
morning, both spot and NY futures briefly dipped below 5,000 US dollars per ounce. Gold
miners fell in tandem: Zijin Mining (02899) and Zhaojin Mining (01818) both dropped more
than 5% at one point, while SD Gold (01787) and Zijin Gold Intl (02259) slid over 7%.
Nip said two key drivers are pressuring gold: first, prolonged conflict has lifted oil,
likely pushing up inflation and tempering rate-cut expectations in developed markets such
as the US, which is negative for gold. Second, the US dollar has strengthened, rising
toward 100 today and seen not yet peaking, adding further pressure. After a stunning
one-year run-up, some profit-taking is also likely. With no near-term easing in Middle
East tensions and oil likely to stay high, the setup remains unfavourable for gold.
Nip expects that after briefly breaking 5,000 US dollars per ounce today, gold could
have room to test 4,800 US dollars. With confidence shaken, gold miners sold off sharply
even though gold's drop today was not large. From the early-month high above 5,400 US
dollars per ounce, NY gold futures are down about 8%. Yet miners have fallen more: Zijin
Mining is down about 20% month to date, while Zhaojin Mining and SD Gold are off roughly
18%, deeper than bullion's pullback. Nip does not recommend bottom-fishing gold miners for
now, given persistent Middle East tensions.